San Diego Settles $173M Pension Lawsuit
A retiree filed a lawsuit against the city for $130 million, including interest, claiming that the city did not invest in the retiree’s pension from 1996 to 2005, according to the Union-Tribune. San Diego officials settled the suit for $173 million. The retiree will not receive personal damages.
The city borrowed $100 million from California’s tobacco settlement and will pay the remaining $73 million, including interest, over five years, according to the newspaper. The city will use property as collateral if it is unable to meet this arrangement (See San Diego Council Approves Tobacco Settlement Funds Use for Pension Deficit ).
The city must also address 11 more pension cases that are pending, as well as a property development lawsuit, two federal investigations into the city’s finances and two criminal cases involving former pension system officials accused of fraud as well as other charges, the newspaper reported (See Feds Raid Office of Former San Diego Pension System President ).
The San Diego pension system suffers from a $1.43 billion shortfall.
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